Question

Susan made 4 uniform annual deposits of $1800 in a savings account that earned an interest rate of 2% per year. Her last deposit was made 7 years ago. What is the future value of her savings 13 years from now, if she leaves the account untouched?

Answer 1

Answer:

"$ 2,880" is the right answer.

Step-by-step explanation:

The given values are:

Annual deposit,

PV = $1,800

Interest rate,

r = 2%

or,

  = 0.02

As we know,

⇒  $FV=PV\times (1+r)n$

On substituting the values, we get

⇒         $=1,800\times (1 + 0.02) 4 + 7 + 13$

⇒         $=1,800\times (1.02)24$

⇒         $=1,800\times 1.6$

⇒         $= 2,880$ ($)